THE ROLE OF

COLLECTIVE
BARGAINING IN
GLOBAL BUSINESS
SCENARIO
Prepared By: Prashant Varpe
Rakesh Satpathy
Rohan Latad
Sachin Dive
Sagar Gaur
Shashank Chourasia
COLLECTIVE BARGAINING

Collective Bargaining is a process of joint decision-

making and basically represent democratic way of
life in industry. It refers to a culture of bipartite
and tripartite system of settlement of industrial
disputes.
THE CONCEPT
Collective bargaining extends to :
 Determine the working condition & terms of
employment.
 regulate relations between employers and
workers.
 Regulate relations between employers or
their organization & a workers or their
organizations.
 ROLE OF COLLECTIVE BARGAINING
 Inthe era of globalization global trade union
organizations have been striving hard to
secure cross-border cooperation between
trade unions and to co-ordinate worker
representations and collective bargaining
at international level.
 The need for transnational worker solidarity
is increasingly felt to meet the challenge of
emerging employer strategies of global
sourcing based on comparative cheap labor
and cost cutting competitiveness.
 Best Example to support the above point is the
Honda Plant Gurgaon.

 The aim is to create a minimum set of labor

Standards applicable across the bargaining units.

It is already beginning to happen through

European Union agreements.
NATURE OF COLLECTIVE BARGAINING

 It varies from country to country. In some

countries it is considered the duty of
employers to engage in collective bargaining
in good faith and some it is not (like Austria).

 In countries like Cyprus and Malaysia it is

different that distinguish between interest
and rights issue.
 UNITED KINGDOM

The British academic Beatrice Webb reputedly

coined the term "collective bargaining" in the
late 19th century.

In Britain the most important refinement in

usage came from Allan Flanders, who defined
collective bargaining as a process of rule-
making leading to joint regulation in industry.
 UNITED STATES

 In the United States, the National Labor

Relations Act (1935) covers most collective
agreements in the private sector.
 This act makes it illegal for employers to
discriminate, spy on, harass, or terminate the
employment of workers because of their union
membership or retaliate against them for
engaging in organizing campaigns or other
"concerted activities" to form "company unions",
or to refuse to engage in collective bargaining
with the union that represents their employees.
 CONTINENTAL EUROPE
 Many continental European countries, like
Austria, the Netherlands, Belgium and
Sweden, have a social market economy
where collective bargaining over wages, is
done on the national level between
national federations of labor unions and
employers' organizations.
 In Finland, a Comprehensive Income
Policy Agreement can be reached in
some years. It is collective bargaining
taken to its logical maximum, setting a
single percentage raise for virtually all
wage-earners.
 InFrance, collective bargaining became
legal with the Matignon agreements
passed in 1936 by the Popular Front
government.
CONCLUSION
 THANK YOU

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